The Future of Apple, Essay Example

Apple recently made history, posting the highest profit by any company in history, at $18 billion. While this record is a historical fete by any company in corporate history, there is question as to whether Apple will be able to maintain the results it recorded in the final quarter of 2014. How will apple stay in the market? How will it remain competitive (in both existing and emerging products)?

Can Apple Stay on Top?

Prior to the first quarter of 2014, Apple was involved in an equal’s battle with the major android maker and distributor, Samsung. However, during that quarter, Apple managed to form a production and logistics cooperation with the biggest mobile provider in China, China Mobile. This opened up the Chinese market to apples products and resulted in a 70% increase in Apples’ sales within China (Goldman; Market Watch). Making this into consideration, Apple is poised to stay on top of the competition in the near future.

How Apple Will Retain Competitiveness

High-end Smartphones

Apple has realized a considerable soar in sales due to a myriad of reasons. One of the most important factors to the company’s success is the retention of the company’s premium brand image. Despite the fact that China has numerous cheaper android phone producers, such as Huawei, Xiaomi and Lenovo, Apple has managed to make considerable inroads, currently competing as a major player in the market (Lunden). This is testament to the efficiency in Apples strategy to concentrate on the production of high-end smartphones. A continues and improved version of this strategy is key to ensuring sustained competitiveness.

Existing and Emerging Markets

A considerable portion of Apple’s sales originate from the iPhone when compared to its PC and tablet products. China is a case study of the growth in profitability a company can realize with an effective pricing strategy, which is supplemented by a company’s brand image within existing markets. Existing markets will provide a better and stronger performance for Apple’s products, based on prestige and pricing (Lunden). Consumers are willing to spend more for quality, or the perception of quality. Emerging markets may prove to be challenging as they are almost always price sensitive. Apple would have to form corporate alliances so as to ensure inroads in emerging markets.

Market Expansion

Apple can realize market expansion in a number of ways. One of Apple’s key asset and strength is its brand. The company can expand its brand through collaboration with existing players within emerging markets, as depicted in the case of China. Bringing other companies in collaboration with or under the Apple brand would considerably expand the brand.

Being a market pioneer is essential in setting up barrier of entry into the market as the market grows. Extending into new and innovative product categories play an important role in keeping the company relevant and introduce new revenue streams. One such example is the Apple Watch. This smart gadget is become a pioneer in the smart devices industry (Lunden).

Apple is also poised to expand its market through line extension. This is achieved by extending into new alternative within a single Apple product. Apple offers all its devices in different storage capacity ranges. This allows for customers to be able to access any of Apple’s products at different prices. This is most evident in the release of the iPhone 6 in 16 GB, 64 GB and 128 GB versions.

In conclusion, Apple is currently an innovator and leader in sales and profits within its industry. This is a culmination of a number of marketing and operational strategies effected by the company over the past three years. Apple has the capacity to remain a leader within the market and make considerable inroads in emerging markets, while cement its position within existing markets. However, this is largely subject to changes in market conditions and strategies and performance of its competitors.

Works Cited

Goldman, David. “Apple just posted the best quarter in corporate history.” 27 January 2015. CNN Money. Internet Source. 1 June 2015. <http://money.cnn.com/2015/01/27/technology/apple-iphone-earnings/>.

Lunden, Ingrid. “Apple Took 89% Of Q4 Smartphone Profits With Android OEMs In A Race To The Bottom.” 26 February 2015. TechCrunch. Internet Source. 1 June 2015. <http://techcrunch.com/2015/02/26/apple-eating-all-the-profits/#.gthzsq:frqB>.

Market Watch. “Apple Inc.” 5 May 2015. Market Watch. Internet Source. 1 June 2015. <http://www.marketwatch.com/investing/stock/aapl/financials>.